Hi,
If the business purchases goods or services in the course of business then it should appear in box 7 even if the VAT is not eligible to claimed as input tax.
As regards what is needs to go in box 7 please see the guidance below:
How to fill in each box on your return
For purchases and outgoings which do not appear on the VAT return these shouldn't be classed as exempt but rather no VAT or Outside The Scope.
Thank you.